The stablecoin issuing company, Tether, has recently announced a new security policy aimed at safeguarding the crypto ecosystem from malicious actors. Additionally, Tether seeks to strengthen its collaboration and relationship with law enforcement agencies. By introducing a voluntary wallet-freezing initiative, Tether aims to counter transactions associated with Sanctioned Persons on the Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List. This new policy represents a significant shift from Tether’s previous stance in 2022 when it expressed reluctance to restrict sanctioned Tornado cash addresses unless explicitly ordered by security agencies.
While Tether already implemented a wallet-freezing policy on its platform, the stablecoin issuer has now expanded this control to the secondary market. By doing so, Tether aims to improve its cooperation with governmental agencies, ensuring the safe utilization of stablecoins. As part of the implementation of the new policy, Tether has frozen all 41 wallets associated with individuals and companies on the OFAC-SDN list. This proactive step showcases Tether’s commitment to maintaining the highest safety standards within its global ecosystem.
Pablo Ardonio, a representative from Tether, expressed great enthusiasm for this strategic decision, emphasizing the company’s dedication to user safety and its desire to foster stronger ties with regulators worldwide. Ardonio believes that by voluntarily freezing wallet addresses of new additions to the SDN List, as well as previously added addresses, Tether can reinforce the positive usage of stablecoin technology and promote a safer stablecoin ecosystem for all users.
This new security policy from Tether has received a warm reception from some crypto enthusiasts who anticipate positive effects on stablecoin adoption, particularly in terms of regulations and general usage. The collaboration between Tether and the US government, as reflected in this policy, is seen as a bullish sign, potentially facilitating the introduction of the US Stable Coin Act and furthering global adoption of stablecoins.
Another recent development involving Tether is the transfer of $60 million worth of USDT to a “mysterious fund/institution” by the Tether Treasury. This transfer, documented by blockchain analytics firm Lookonchain, reveals that Tether has dispatched a total of $1.76 billion USDT to this fund/institution since October 20. Subsequently, these funds have been further distributed to other exchanges. Given Tether’s status as the issuer of the world’s largest stablecoin, such large-scale transactions naturally invite attention and scrutiny from the crypto community.
As of now, USDT maintains its impressive performance in 2023, reaching a market capitalization value of $90 billion. This success solidifies Tether’s position as a leading stablecoin in the crypto space.
Tether’s introduction of a new security policy, including voluntary wallet-freezing and enhanced cooperation with law enforcement agencies, marks an important step in safeguarding the cryptocurrency ecosystem. By prioritizing user safety and strengthening relationships with regulators, Tether aims to ensure the responsible and secure use of stablecoins. The recent large-scale transactions by Tether, coupled with its outstanding performance in the market, further underline its prominence as a key player in the crypto industry.
